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Bulls come back to Boston Scientific

Posted
1/4/2013 1:21:00 PM
By: optionMONSTER
Referenced Stocks:BSX

Boston Scientific is drawing upside option activity for the second day in a row as the medical-device company tries to rebound from years of bearishness.

Traders were focused on the February 6s yesterday and are moving up to the August 7 calls today, buying more than 5,000 contracts for $0.27, according to optionMONSTER's Heat Seeker tracking system. Volume is almost 8 times the strike's open interest at the beginning of the day, indicating that these are new positions.

BSX is down a penny to $5.94 this afternoon but is up 7 percent in the last month. The stock is down from over $45 in 2004 but has been finding support around $5 since late 2008. Quarterly results have been mixed, punctuated by weakness in its cardiac business, and management is seeking new growth in other areas.

Today's long calls , which lock in the price where the stock can be bought, are looking for BSX to gain more than 22 percent by expiration in mid-February. Total option volume is quadruple the daily average so far today, with calls outnumbering puts by 55 to 1. (See our Education section)